Each one in plain English, with the numbers worked through for a shareholder.
2 June 2017capital raising announcement● NeutralMajor
On May 26, 2017 Lonestar agreed to buy two sets of Texas oil and gas properties: Battlecat's (Dewitt, Gonzales, Karnes Counties) for about $60M ($55M cash plus about 1.2M Class A shares) and Sanchez subsidiary SN Marquis's (Fayette, Gonzales, Lavaca Counties) for about $57M ($50M cash plus 1.5M Class A shares). To help fund them it agreed to sell Chambers Energy Capital III about $78M of new convertible preferred stock that ranks ahead of common stock, pays 9% dividends and gives Chambers a board seat. Shareholders face dilution from the new shares and the preferred, which carries conversion rights.
1 Nov 2016capital raising announcement● NeutralMajor
Lonestar reworked its Seaport Global note-repurchase deal: Seaport's gap financing is now repaid in cash (105% before December 31, 2016, 111.1% from January 1, 2017) when a public stock offering happens, with shares issued (capped as before) only if the offering does not occur. It also gave majority holder EF Realisation the right to nominate up to two directors (while it owns 15% or more; one if 10% to 15%) and resale registration rights.
Lonestar agreed with Seaport Global to have it buy back 8.75% 2019 notes on the open market, with Lonestar paying in new common stock (up to the lesser of 460,000 shares or the amount that keeps majority holder EF Realisation above 50%) once stockholders approve. The press release says long-term debt was $284.4 million at September 30, 2016, down $35.0 million from June 30, and $68.2 million of the 2019 notes had been repurchased. It also says an agreement was signed to sell remaining conventional assets for $14.0 million, closing October 31, 2016; this continues the debt-reduction effort begun with the second lien notes.
3 Aug 2016capital raising announcement● NeutralMajor
Lonestar agreed to sell up to $49.9 million of 12% second lien notes due 2021, plus warrants for 998,000 shares at $5.00, to Juneau Energy and other purchasers, with Leucadia guaranteeing Juneau. The first $10 million was expected to close August 4, 2016, with proceeds for general purposes including buying back its 8.75% notes due 2019. Leucadia also committed to buy up to $20 million of stock in a public offering by December 31, 2016 (for a $1 million fee), and 500,227 shares go to Juneau for oil and gas interests it sold the company. This follows and uses the credit amendment that allowed second lien debt, and adds dilution from the warrants and shares.
